Evidence study no. 25 of the motion picture industry (1933)

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Foreign Problems <^> <^> <^> <^> <^> <^> 399 by those who thought that it would be to their economic advantage to develop a motion picture industry within their own country. Realizing that it would be extremely difficult under conditions of free competition to gain a position of advantage, it was natural that they should have sought through the emotional appeal to secure governmental aid in support of their own enterprises and to have governmental barriers imposed upon the American product. Moreover, there already had developed a very substantial amount of really sincere sentiment in favor of quota restrictions on the part of patriotic societies, manufacturers' associations, and the like, upon which the foreign producers were not slow to capitalize. The "first of the important European countries to take action was Germany. The German 'kontingent' law required that foreign pictures could be imported only through the purchase by a foreign producer or distributor of a permit or kontingent which was issued to the domestic producer on the completion of a picture". The law of January 1, 1925, declared that for every foreignmade feature brought before the German censorship board a German film of approximately equal length should be presented for censoring at the same time. This regulation was abandoned on January 1, 1928, when it was found that it encouraged the production of cheap German pictures, and a straight import permit was substituted. This law was intended to have a number of important consequences. It definitely restricted the number of foreign films that could be imported. Again, it assured a number of German producers that a certain portion of the domestic market would be reserved for them. Finally, since the domestic producer could sell his product to whomsoever he pleased, it placed within the power of the German producer the ability to determine which foreign companies would be permitted to export pictures into the German market. The figure given for Germany in the second column in Exhibit 35 shows clearly the effect of this law in stimulating domestic production. It may be observed that a smaller percentage of Amer